Romania

According to the provisions of the Fiscal Code (Article 7(28) of the Law no.227/2015, as amended and completed), a resident individual is a person who:

1. is domiciled in Romania, or
2. has his/her centre of vital interests in Romania, or
3. he/she is present in Romania for more than 183 days in any 12 consecutive months interval ending in the concerned calendar year.
4. he/she is a Romanian citizen working abroad as an official or an employee of Romania in a foreign state.

Romanian citizens who are residents for tax purposes in Romania are taxed on their worldwide income (except for income derived from work performed abroad, if certain conditions are met).

Starting with 2012, all individuals who come in/leave Romania and whose residence exceeds 183 days during any period of 12 consecutive months, have the obligation of filling in the form "Questionnaire for setting out the tax residence of an individual when coming in/leave Romania" - the deadline is 30 days from the term when the 183 days of presence in Romania are exceeded or 30 days before they leave Romania.

As a consequence of the analysis of the questionnaire and other related documents, the responsible tax authority will decide if the non-resident person will keep the residence of the other state according to the DTT or the individual becomes resident of Romania. In the case of individuals who leave Romania, the tax authority, will decide in the same manner, if the person will keep the residence of Romania or the individual will become resident of the other state.

According to the provisions of the Fiscal Code (Article 7(37) of the Law no.227/2015, as amended and completed) resident legal person is any Romanian legal person, any foreign legal person having the place of management in Romania and any legal person established according to the European regulations with registered head office in Romania.

In terms of tax legislation, the associations without legal personality established under the Civil Code are subject to fiscal transparency. There are also Professional limited liability companies used to exercise the profession of lawyer or insolvency practitioner which have legal personality but are also subject to fiscal transparency

Thus, according to the definitions provided by the Fiscal Code (Article 7(14) of the Law no.227/2015, as amended and completed), the transparent fiscal entity with/without legal personality is represented by any joint venture, any association or association of parties, association based on exploiting contracts of a common party, economic interest group, civil society or other entity that is not treated as a taxable person for the purposes of the income tax and profit tax.

Transparent entities with/without legal personality are not considered tax residents under the Fiscal Code.

Mariana VIZOLI
General Director
General Division for Fiscal Code Legislation and Custom Regulations
Ministry of Pubic Finance
Romania
E-Mail: maiana.vizoli@mfinante.ro

Elena IORDACHE
Deputy General Director (Direct Taxes)
General Division for Fiscal Code Legislation and Custom Regulations
Ministry of Pubic Finance
Romania
E-Mail: emilia.iordache@mfinante.ro

Oana IACOB
Deputy General Director (Indirect Taxes)
General Division for Fiscal Code Legislation and Custom Regulations
Ministry of Pubic Finance
Romania

Oana CIUREA
General Division for Fiscal Code Legislation and Custom Regulations
Chief, Department concerning the taxation of non-residents, negotiation and application of tax treaties (tax residency issues)
Ministry of Pubic Finance
Romania
E-Mail: oana.ciurea@mfinante.ro